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Projects in Eastern Europe
SWEDEN
Overview
EMX has now established a fully staffed and equipped technical field office and sample preparation facility in Kiruna, which is an important center for exploration and mining in northern Sweden. The Company has acquired the available data pertaining to previous historical work on its exploration permits and elsewhere, including airborne and ground geophysical data sets, geochemical sampling data, geological maps and drill results. EMX recognizes the potential in northern Fennoscandia for the discovery of copper-gold deposits similar to the Aitik (porphyry copper-gold mineralization that supports Europe's largest copper-gold open-pit mining operation), and to the Viscaria copper deposit, which is an EMX Royalty project and considered by the Company to be an iron-oxide copper-gold (IOCG) deposit.
Exploration in the region is challenged by the extensive cover of soils, glacial materials and vegetation, and consequent lack of outcrop. As a result, exploration during the past 10 to 15 years has tended to focus on individual occurrences and deposits that were known and described during the comprehensive state-funded exploration ventures in the second half of the 20th century. EMX considers this challenging environment to be an opportunity, and is using its comprehensive exploration databases and in-house expertise in porphyry and IOCG mineralization to generate exploration projects on target areas that, for various reasons, may not have been subject to the more focused activity of the past 10 or 15 years.
In 2011 EMX established a Strategic Alliance and Earn-In Agreement (the "Agreement", please see EMX News Release dated February 18, 2011) with Antofagasta Minerals S.A. ("AMSA") focused primarily on copper exploration in Sweden. The Agreement includes a regional strategic exploration alliance that covers all of Sweden (subject to certain exclusions), as well as two Designated Projects -- the Kiruna South and Norrmyran Projects. Under the terms of the Agreement, additional properties in the EMX portfolio are being advanced towards Designated Project status, and new areas are continually being evaluated for acquisition.
EMX is also continually assessing opportunities for acting on outstanding exploration opportunities throughout the Fennoscandia region. As such the Company is advancing the Storåsen copper-gold-PGE project in central Sweden.
Kiruna South Designated Project
Under the Agreement, seven properties were initially included in the Kiruna South Designated Project (see Company news release dated February 18, 2011). The Kiruna South Designated Project has been increased to ten properties -- the Pikkujärvi 1, 2, 3 and 4, Puoltsa 10, Kalixfors 1, 3 and 4, and Saivo 1 and 3 exploration permits covering a total area of 508.28 square kilometers (please see maps) in Norrbotten County, northern Sweden.
The Pikkujärvi exploration permits include the Sierkavare and Sakkek prospects. Sierkavare was first identified by Luossavaara-Kirunavaara AB ("LKAB"), the operating company of the Kiruna iron ore mines. LKAB drilled 36 core holes during 1982 to 1985, targeting copper-gold mineralization hosted by metavolcanic rocks at the contact with a quartz monzonite. Subsequently in 1986, LKAB reported a historical resource estimate on the basis of 27 diamond drill holes totaling 5,414.1 meters (LKAB Report Nr 86-34 by Kirsten Holme, titled "Preliminary tonnage estimate of the Sierkavare copper mineralization"). During 2011, EMX carried out base-of-till, top-of-bedrock, and surface till geochemical sampling in the area, and identified copper anomalism on extensions from Sierkavare as well as over the geophysical structure extending NNW from the Sakkek prospect.
The Puoltsa 10 exploration permit covers favorable geology and geochemistry proximal to, and extending from, the Pahtohavare and Rakkurijärvi copper-gold-iron deposits. A prominent northwest-southeast trending fault passes through the permit area. The Ailatis and Saarijärvi copper-gold-iron prospects are located within the permit, and new targets have been identified.
The Kalixfors 1, 3 and 4 exploration permits includes favorable geology and geochemistry in an under-explored area. Earlier work in the 1970's identified copper-gold mineralization at Kielinen and Vuotnavare, a copper-molybdenum-gold prospect at Håmojågge, and an extensive field of copper mineralized boulders at Akkavaara. Initial field work by the Company during the 2011 summer season confirms the presence of a 12 km trend of copper-gold mineralization and geochemical anomalism extending southeast from the Vuotnavare occurrence, which has been tested by only four historical diamond drill holes.
The Saivo 1 and 3 exploration permits are located south and east of the Kalixfors permits, and cover an area characterized by a very marked north-south trending geophysical structure extending for over 20 km with coincident copper anomalism in historical base-of-till and mobile metal ion (MMI) geochemical sampling. EMX field work during the 2011 summer season identified outcropping copper mineralization, and confirmed the geochemical anomalism.
Field work in the Kalixfors and Saivo exploration permits during the 2012 summer season is planned to provide sufficient ground information with which drill targets can be identified for the 2012-2013 winter season.
Additional EMX exploration permits in Norrbotten County, northern Sweden.
The Sadjem and Leipovaara 2 exploration permits, together with the application for the Sadjem West exploration permit, comprise the Company's Aitik South copper exploration project. The three permit areas cover approximately 120.5 sq km, and are about 5 to 15 km east and southeast of the Aitik copper-gold mine in Norrbotten County. The area was identified as one of the few areas available for application in the copper-productive Aitik-Nautanen district in Norrbotten County, Sweden. The geology of the area consists of 1.88 -- 1.86 Ga metasedimentary and metavolcanic rocks, intruded by 1.85 -- 1.75 Ga granitic rocks. A significant NNW-trending structural feature is marked by the airborne magnetics, and is clearly seen to crosscut and displace NNE and NE trending features. This structure can be interpreted to be a continuation of, or a splay from, the regionally important Nautanen Deformation Zone. The known mineral occurrences, Sadjem and Raatukkavaara, are located near this magnetic feature. There is very little publically available exploration data from the project area, and there are no records of any drilling on the permits. EMX geologists have identified alteration and copper mineralization in strongly sheared intrusive rocks. The compilation of the regional geochemical and geophysical datasets, together with field observations, are encouraging. The Company plans to undertake wide-spaced geochemical base-of-till sampling coupled with induced polarization geophysics to define drill targets.
In addition, the Company has undertaken initial field work (geochemical sampling, geological mapping) as well as evaluating all the historical data on its Ussavaara, Mattavaara and Iekelvare exploration permits. These three permits cover known occurrences of copper-gold mineralization, as well as surrounding prospective geology. Fieldwork will continue in the 2012 summer season, and the Company is confident that drill targets will be identified.
Norrmyran Designated Project
Under a recent agreement with AMSA (please Company news release dated January 23, 2012), the Norrmyran 1 and 2 exploration permits are the subject of the Norrmyran Designated Project. The exploration permits cover approximately 126 square kilometers in the western part of the Skellefte Mineral belt, Västerbotten County, Northern Sweden. The Skellefte belt is famous for its VMS copper-zinc massive sulphide deposits and mines, but also includes porphyry copper and orogenic gold deposits.
The Swedish Geological Survey discovered copper-gold-molybdenum mineralisation at Norrmyran in granitoids, both in outcrop and in boulders, in the 1980's. Phelps Dodge Exploration Sweden AB (PDES) was attracted to the area because of the copper-molybdenum occurrences, geochemistry and exploration potential. The PDES exploration database was acquired in EMX's purchase of the PDES assets from Freeport-McMoRan Copper & Gold Inc. (NYSE: FCX) (see Company news release dated August 12, 2010).
The Norrmyran exploration permits cover an east-west trending contact between Early Svecokarelian granites (Jörn Suite) to the south, and the regionally extensive post-Svecokarelian granites. Outcrops of copper-molybdenum sulphide vein and stockwork mineralization occur on and close to this contact.
Regional geochemical sampling (surface till, stream-organics, rocks) was undertaken by the SGU in the 1970's, 80's and 90's. The stream-organic samples clearly identify a coherent zone of copper anomalism close to the granite contact, but the results from the surface till sampling are disappointing due to the thick cover of fluvio-glacial till deposits. EMX's work on the property has identified mineralization and alteration styles characteristic of porphyry copper systems that, together with favorable geophysical and geochemical attributes, define an extensive target area. A program of wide-spaced diamond drilling is expected to commence in late Spring 2012.
Storåsen copper-gold-PGE
The Storåsen exploration permits are located in west central Sweden. EMX has acquired a commanding land position over 56.21 square kilometers in the area, and currently holds an unencumbered 100% interest in the property. The property hosts a historic inferred resource defined by Poplar Resources in 2002 which remains open in more than one direction. As well, there is considerable upside exploration potential elsewhere on the property.
The mineralization is hosted by a "window" (known as the "Storsjö Window") of Proterozoic gneisses, mafic metavolcanics and intrusives (amphibolite), and metasedimentary rocks in Caledonian metasediments. The mineralization is characterized by disseminated, web-textured, and vein controlled zones of pyrite and chalcopyrite with, gold and platinum group elements. Styles of mineralization resemble those seen in "magmatic" sulfide deposits, but evidence for hydrothermal alteration is seen throughout the area, and sericite and silica alteration is reported by Poplar (2002) from the Central Zone. The original mineral paragenesis has been complicated by the affects of metamorphic redistribution.
A total of 35 core holes were drilled on the property by the SGU from 1980 to 1989. Most of these were relatively shallow holes (22 of the 35 were less than 100 m), and targeted the Central Zone, where a gabbro sill within the gneiss hosts the mineralization. Only 5 reconnaissance holes were drilled in the Bell Zone and another 2 holes in the Ostlund Zone with all failing to intersect the rich styles of mineralization seen in boulders. Poplar Resources drilled an additional drilled 18 additional holes on the property in 2001. The best drill intercepts include:
- 25.25 m of 0.49% Cu, 0.23 g/t Au, 0.27 g/t Pd (DH BB-11),
- 8.46 m of 1.01% Cu, 0.40 g/t Au, 0.96 g/t Pd (DH 86013) and
- 6.75 m of 0.78% Cu, 0.44 g/t Au, 0.64 g/t Pd (DH 86012).
- Numerous boulders of high grade mineralization have not yet been traced to source - in particular the Bell and Ostlund Zones.
- Drilling to date has been shallow, mostly less than 100 m, to a maximum of only 180 m. Given the limited understanding of the controls of mineralization on the property, the assumption that all mineralization has its strongest expression in the near-surface environment seems premature.
- The grades of mineralization intersected in drilling the Central Zone do not match the higher grades found in channel samples collected from boulders. The drill hole and surface geological data from the Central Zone needs to be remodeled with 3D visualization to determine trends and identify extensions. Deeper drilling in the Central Zone is warranted to test the downward continuity of those zones of mineralization, and the potential of higher grades at depth.
- Base-of-till sampling should be employed as a targeting technique throughout the property, particularly to trace the source of the mineralized boulders in the Bell and Ostlund Zones. A limited program of base-of-till sampling was undertaken by the SGU in the 1970's clearly identified the Central Zone, and the northwestern profile terminated with a highly mineralized sample.